Construction Industry Scheme (CIS) and landlords

Construction Industry Scheme (CIS) and landlords

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I am a landlord, I rent domestic properties out.   I have yet to sell a property and any property that I do sell would not have been brought with the intention of selling it, rather with the intention of renting it out long term.

I have just brought a property that I will do a lot of work on before renting it out.   Some of this work will be done by trades people on a day rate, these trades people will provide their own tools.

I am right to assume that I will be outside of CIS?

What do I do if you make use of any labours that don’t provide their own tools?

(Please remember that this is real life, and I will not be doing the same again for some time.)

Replies (5)

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Euan's picture
By Euan MacLennan
18th Aug 2014 13:47

Not CIS

As you are not a property developer by trade, you are not a CIS contractor.

Thanks (1)
Stepurhan
By stepurhan
18th Aug 2014 14:13

Caveat (but probably not a major one)

If you spent over £1 million on construction work in a year, you would become a deemed contractor anyway. I am assuming that this is extremely unlikely to be relevant to you though.

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By ringi
18th Aug 2014 18:24

Thanks this confirms my understanding.

However I do I deal with labours doing a few days work given they don’t provide tools.   I can still just get them to invoice me and pay the invoice without having to setup PAYE?

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By DMGbus
19th Aug 2014 08:54

Status issue

If contractors are used on the following basis:

Occasionally with no expectation to provide them with regular expectation of ongoing future work [lack of mutual obligation]They quote a price which you might reject or accept [their risk / opportunity to profit]

Then it looks like a clear-cut case of them being self-employed and little risk of being adjudged to be employees.  It will be even more certain as to being self-employed status if the following apply as well:

They reject work when they are sometimes too busy on other cobtractsThey provide materials, and their own tools, plant & equipmentThey sometimes use additional labour (either s/cs to themselves or employees)

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By AAProperties
15th Jul 2015 19:19

Construction Industry Scheme (CIS) and landlords

Wouldn't the people he employed be SUB CONTRACTORS???

 

Isn't he supposed to file in the CIS to HMRC every month??

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